El Paso Water gets permission from city to look for more than $150 million in bonds
EL PASO, Texas —
El Paso Water officials have asked the City Council for approval to search for new bonds for two different projects.
The city gave the utility the green light to look into ways to pay off the bonds at a interest rates below 4.5 and 4.6 percent.
"It's just good financial oversight and fulfilling the fiduciary responsibility,” Mayor Dee Margo said.
Margo said this could help save money in the long run.
"If you can come up with the dollars that are less expensive, then you go back and apply those to redeem bonds that were at a higher cost,” Margo said.
El Paso Water President John Balliew said the refunded bonds are going to be used for different projects around the city for water and sewage systems; as well as drainage systems.
Council members also set a cap of $151.6 million as combined total for the bonds ($95,360,000 and $56,310,000 respectively).
El Paso Water’s president says the bonds are necessary and could hit your wallet.
"It will have some impact on the rates. So the Public Service Board on annual basis updates the five-year financial plan,” Balliew said. “In the last fiscal year when the financial plan was updated, there was (a) wastewater and (a) storm water increase; those were (forecast) in the plan.”
The utility president says it’s still too early to know how much this raise rates. it still has to get the bonds, and sign off on them during its budget cycle. It will finalize its budget in January.
There will be public hearings on the budget on November 8th and December 13th at 8 a.m. on 1154 Hawkins Boulevard, El Paso, Texas.